Canton Mayor Gene Hobgood reported the city's finances are improving as part of his "state of the city" address.

Hobgood gave a two-year status report for the city during the Canton City Council's work session on Thursday night. He took over the mayor's seat in 2008.

Through good, conservative management, Hobgood said the city's finances are "changing for the better."

"We were headed down hill. Now, we are on level ground," he said.

The city had no reserve funds two years ago, but could end the 2010 financial year with as much as $1.5 million in reserves.

"This is significant progress," Hobgood said.

Councilman Bill Bryan said the city has "come a long way in two years."

"We are beginning to build our reserve fund. That is the only responsible way to run a government," he said, giving the credit to Hobgood's leadership.

During his address, Hobgood also said the city had improved revenues through an audit of its storm water fund and adding customers who had not been paying.

It also grew revenue by increasing collections from businesses that were not paying for business licenses.

Another area Hobgood spoke about was the city's efforts to provide active park areas. The council is working with the county Board of Commissioners to build an active park at the end of Brown Industrial Parkway, and the city will be fencing off portions of Heritage Parkway for active use this year.

He said the cry from the public for active park areas has been heard by the council.

"We are trying to provide for that," he said.

Hobgood also spoke about the hiring of an experienced city manager, Scott Wood, who joined the city government staff last fall.

"I am very proud of the fact that we got Scott Wood as our city manager," Bryan said. "He has already brought a level of professionalism to the city."

Hobgood also reiterated the council's dedication to obtaining state approval to install a traffic signal at the intersection of Highway 20 and Northside Hospital Parkway at the Canton Marketplace development.

He also reaffirmed his commitment to transparency in the city's government.

Councilman Jack Goodwin said he was impressed with the mayor's presentation.

"I think he was right on," he said. "We are headed in the right direction. (Hobgood) has good vision and a good head on his shoulders."

During its work session on Thursday night, the council also reviewed a proposal to extend the city's "last call" for serving alcohol from midnight to 2 a.m. on Mondays through Saturdays. Alcohol serving hours begin at 9 a.m. on those days.

Councilmen Bob Rush and John Beresford spoke in favor of the extension. Goodwin and Bryan both said they would not support the measure.

Councilwoman Pat Tanner indicted support by saying the extension would give local restaurants the option to stay open later. She and Councilwoman Amelia Rose were both in favor of the extension when it was proposed last year, but defeated.

During the work session, Wood announced that Chief Financial Officer Rob Logan was leaving the city after 11 years of service.

Logan said he is leaving the city government to take a similar position with CH2Mhill, a full-service engineering, consulting, construction and operations company.

He will start his new job Monday, but will continue to work with the city government off and on for the next month to ease the transition.